Yes, you can get a home loan without a job. It may seem impossible, and to the wary, kind of scary. But there, indeed, are legit lenders who can give you financing at the time of need.
It’s true, many lenders have slackened on qualifications years after the trauma of the 2008 crisis. Some of them have recognized the fact that a good number of “limited” borrowers deserve access to financing as well.
For unemployed borrowers, there are ways to reach a compromise with your lender – usually in the form of non-conventional assurances.
Showcase good history
Typically, lenders look at your income when you apply for a mortgage. They look at how much you earn each month and calculate how much of your debt puts a strain to that source of income.
But what if you don’t have that proverbial source, to begin with?
In such a case, your lenders may look at patterns in your credit record. These include how you pay your credit, whether you are receiving alternative sources of income such as an alimony or disability allowance, if you have cash reserves in your savings account, or if you pay your bills on time.
These elements are good indicators of a person’s creditability, despite the absence of a traditional source of fund and depending on what the lender determines, can still gain you an approval when you least expect it.
Think out of convention
Government-backed loans are strict about their guidelines and most likely only lend money to people who can tick the conventional income availability requirement off the list. Instead, look for lender alternatives when loan shopping. These are lenders who offer non qualified loans that defy some of the guidelines set by the Dodd-Frank Act. They are more flexible at giving out approvals to those who fit their non-conventional criteria.
Enlist Co-Signor Help
If you don’t want to get in a subprime mess because you’ve been persuaded by tons of articles online about its potential disaster, you can always enlist the help of a co-signor who has the income and the credit to fill up the void of your credentials. This should be someone who can vouch for your creditworthiness and who trusts you as a financially-capable person.
Remember that when you fail to make your payments, they are held accountable as well. Plan this properly and make sure the person fully understands his or her responsibility in the situation.
Getting a mortgage without an income source can be a bit risky, both to you as a borrower and your lender. Before you finalize your decision, see to it that you have properly evaluated your finances and are confident of your ability to repay. After all, it’s your burden in the end. Be wise and know that there are options to turn to should you decide to push through.